United Airlines's struggling parent company may file for bankruptcy this autumn unless it can cut costs, it was revealed today.
"Unless we lower our costs dramatically, filing for bankruptcy protection will be the only way we can ensure the company's future and the continued operation of our airline," Jack Creighton, United's chairman and CEO, said in a statement.
Three airlines have already filed for bankruptcy protection in the US this year, blaming the sluggish economy, competition from low-cost carriers and a downturn in travel following the September 11 attacks.
United, the second largest US airline, would be the biggest to seek protection from creditors. The company lost a record dlrs 2.1 billion (£1.4 billion) last year and another dlrs 851 million (£567 million) during the first six months of 2002.
Industry leader, American Airlines, earlier this week announced a restructuring plan that will trim 7,000 jobs by March and ground 74 jets.
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